Yields haven’t walked back, though. The 10-year yield is still at around 1.6% and the dollar isn’t feeling bearish at all.
While the above is happening, the crypto space is underperforming on the session relative to equities. After reaching new highs on Saturday, BTC fell on Sunday about 3%, then fell another 4% throughout Monday. We’re now closing the session down at $56,500, or 8% from the all-time high.
In an interesting turn of events, during the downward move, alts typically underperform, meaning the BTC dominance index goes up. Yesterday, BTC lost ground relative to alts, suggesting that part of the BTC sellage went into various alts. ETH held up better, as did ADA, XTZ, and VET (VeChain). VET totally outperformed rising 20% in USD terms, and 25% in BTC terms.
On a broader scale, a beautiful chart from Glassnode tracked the amount of new entrants into the crypto space. We can see the number of entities growing relentlessly over the past few months, and more so in the past weeks (despite the downturn). The message is clear: more people are getting involved.
While that’s happening, a CryptoQuant chart shows the massive outflows from the exchange, showing that people are taking coins away to be held. That’s again very supportive of low supply, less sellers, and higher prices. This, by the way, is applicable not just to BTC, but also ETH.
Totally unrelated of course, but a new survey shows that nearly 10% of the $380 billion stimulus check may be used to buy bitcoin and stocks. I’ll let you do the math. https://finance.yahoo.com/news/nearly-10-of-the-380-billion-in-stimulus-checks-may-be-used-to-buy-bitcoin-and-stocks-survey-131009531.html?guccounter=1
Written by: Justin d'Anethan, Sales Manager
Yesterday's trading was mixed. Early in the session, even with reports of economic slowdown in the US, traders were still buying, maybe thinking it solidified the accommodative Fed policies.
Yesterday’s narrative was somewhat bittersweet. On the one hand, Fed policies remain hyper accommodating, which is positive. On the other hand, the accommodating stance is based on lingering concerns about the economic recovery in the US (and also globally).
Bitcoin has fallen back below $40,000 today, as the denial from Amazon of the impending acceptance of Bitcoin as a payment method came through. Prices returned to our support level of $36,500 before rallying once more, a sign that this move may be supported by more than just click-bait headlines.